VanEck Launches First Solana ETF in the United States
Cryptocurrency ETFs have become a focal point in the market this year. The approval process for cryptocurrency ETFs by the U.S. Securities and Exchange Commission (SEC) has been filled with twists and turns, reflecting the cautiousness and exploration of regulatory agencies towards emerging markets.
With the successive approval of Bitcoin and Ethereum ETFs, the market’s expectations and demand for cryptocurrency ETFs have continued to rise.
VanEck, one of the first companies in the United States to issue a Bitcoin spot ETF, recently submitted an application for a Solana ETF to the SEC. This has caused the Solana token SOL, also known as the “Ethereum killer,” to surge nearly 10% in the past 24 hours, driving an increase in the cryptocurrency market. As of the time of writing, the price of SOL is $146.89.
Matthew Sigel, Director of Digital Asset Research at VanEck, announced this news on June 27th and named the fund “VanEck Solana Trust.” This is the first application for a Solana spot ETF in the United States, marking an important milestone for the cryptocurrency market.
In the documents submitted to the SEC, VanEck emphasized the potential of Solana as a digital commodity. Sigel believes that the functionality of the SOL token is similar to other digital commodities such as Bitcoin and Ethereum, and is also used for transaction fees and services on the blockchain.
“Just like Ether on the Ethereum network, SOL can be traded on digital asset platforms or used for peer-to-peer transactions.”
Further reading:
SEC Loosens Up! Ethereum ETF to Be Approved This Summer, What Will Happen After the Approval of “Ethereum ETF”?
Is there a chance for the Solana ETF to be approved?
VanEck’s timing for proposing a Solana spot ETF application comes shortly after the SEC’s partial approval of the Ethereum ETF. The partial approval of the Ethereum ETF ended the long-standing debate between the market and the SEC on whether Ether (ETH) should be classified as a commodity or a security.
From this series of events, it can be seen that the SEC’s regulatory attitude towards cryptocurrencies is changing, which is a positive signal for emerging blockchains like Solana.
Solana blockchain has been dubbed the “Ethereum killer” due to its high scalability, speed, and low cost, making it a strong competitor in the market.
VanEck has always been a pioneer in this field. As early as 2021, VanEck submitted the first application for an Ethereum spot ETF, nearly three years ahead of SEC’s engagement with other issuers such as BlackRock and Fidelity.
According to analysts’ predictions, after the formal approval of the Ethereum ETF, it is expected to attract $5 billion in net inflows within the first five months.
Several experts believe that after the approval of the Ethereum ETF, the next token that is likely to apply will be SOL, as it shares high similarities with Ethereum.
Standard Chartered Bank analyst Geoffrey Kendrick also believes that Ripple’s XRP token could be another option.
However, James Seyffart, an analyst at Bloomberg Intelligence, stated that unless there is a new government and new SEC management in the United States by 2025, it is possible for these ETFs to be launched in 2025. Even so, there is no guarantee.
Solana, as a high-speed, low-cost, and scalable blockchain, has significant market potential. VanEck’s move indicates that market confidence in Solana is increasing. As the cryptocurrency market continues to mature, investor interest in emerging technologies and platforms like Solana will continue to grow.
The launch of VanEck Solana Trust not only provides investors with more investment options but also further consolidates Solana’s position in the blockchain field. This move is expected to promote the development of the Solana ecosystem and attract more developers and projects to enter this field. In the coming years, we are likely to see more innovation and breakthroughs that inject new vitality and opportunities into the cryptocurrency market.
References:
cointelegraph
,
coindesk